Université de Fribourg

Local debt: from budget responsibility to fiscal discipline

Dafflon, Bernard

(Working Papers SES ; 417)

In the past thirty years, local governments in most European countries have been granted at least limited access to borrowing. The rules in force include limitations on the amount of borrowing and/or debt service, restrictions on the purpose of debt and on borrowing from foreign institutions and/or from the central bank. The description of these rules and sanctions constitute the thrust of...